When Should I Purchase My First Apartment?

Market Insights
8 years ago
2 minutes

Knowing when to buy is sometimes a difficult concept as it engages with so many different variables and scenarios.

Buying at a certain time may benefit one person, but may be completely uncomfortable for another.

So what do you have to take in mind to define when it is a good time for you to buy?

  1. Money

    This is an obvious factor.

    If you don’t have enough money to buy, then you shouldn’t, and most likely, couldn’t, buy an apartment.

    If you want to buy a home, and you don’t have the money, then you need to save, save and save.

    The more you show the bank that you can’t save, over an extended period of time, the better your loan application will look.

    Whilst having a helping hand from your parents helps finances, banks want to see independence - especially if you are applying for a home loan by yourself.
  2. Consistency of employment

    If you want to buy a home, don’t go changing jobs at the blink of an eye.

    The more consistent your employment goes back, the more consistent it looks going forward.

    If you are self-employed, the more tax-returns you show, the stronger you look.

    Obviously, if you need to change jobs, then do, but if you are changing because you are in need of a change of scenery, then do it after you’ve secured your loan.
  3. The Market

    The market defines whether it’s a good time to buy or not.

    There may be another property slump where property prices plummet, but you can’t wait around relying on that.

    Move with the market, if you’re wanting to buy in St Kilda, the more competitive the selling market is, the more competitive the prices will be.

    You can evaluate the market by looking at recent sales prices in the area, and also speak to real estate agents who operate in the area, as they will be able to give you a realtime evaluation on what the property prices are.